Hollywood Park City Council members, meeting Nov. 15, pledged to remain committed to exploring some type of additional property tax relief.

While the council met in October to consider implications of freezing taxes imposed on homeowners age 65 and older, the Nov. 15 meeting focused on how possibly increasing Hollywood Park’s age 65-plus tax exemption from $5,000 could affect the town’s finances.

City Treasurer Fred Timmons said, based on a recent data request submitted to the Bexar County Appraisal District, Hollywood Park has 555 properties eligible for an age 65-plus tax exemption.

According to Timmons, raising the exemption to $10,000 at the property tax rate of $0.461 per $100 valuation would result in annual savings of $46 to the property owner and a $25,624 decrease in property tax revenue.

Timmons and Mayor Sean Moore reiterated their concerns that a tax freeze or increasing the tax exemption could possibly force the city to look at dipping into its financial reserves and/or cutting some basic services to ensure a balanced budget.

Timmons said, to offset that projected drop in revenue, the city would have to raise the property tax to $0.46533 per $100 valuation.

According to the 2020 U.S. Census, Hollywood Park has 3,130 residents—24.5% of which are 65 years old or older.

“Because there are so many [age] 65 and over households, it makes a big impact on our city,” Timmons said.

Council Member Todd Kounse said it is important to remind residents that a projected decrease in property tax revenue caused by more tax relief is just that—a reduction in budgeted income as opposed to a full budget shortfall.

Kounse and others said it would be wise for the city to take a closer look at budgeted expenses, especially if the town were to impose a tax freeze or larger tax exemption.

“I don’t think it’s not doable, we’ll do what we have to do,” Mayor Sean Moore said, adding that the city would still have to weigh options, such as raising taxes, cutting services and/or dipping into reserves to offset the effect of further tax relief.

“You create the likelihood of those opportunities rather than build up a surplus,” he said.

Council members and city staff agreed they still need more accurate, updated data and discussion before rendering a decision on some type of tax relief. The city has set no timeline for such a decision.

Resident Shannon Sims, who approached the council in August with a tax freeze proposal, said she understands the city’s elected leaders require more time to investigate how a tax freeze could affect the town’s finances.

“My only request is that you understand what we have before you make a decision and button down on that decision, and make a decision before (the fiscal year 2023-24 budget),” Sims said.